Problem 13-20 MIRR (LG13-4)

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 9 percent, and that the maximum allowable payback and discounted payback statistics for the project are 3.5 and 4.5 years, respectively.

Time:	0	1	2	3	4	5	6
Cash flow	$9,900	$2,000	$3,200	$2,400	$2,400	$2,200	$2,000

Use the MIRR decision rule to evaluate this project. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

MIRR

%

Should it be accepted or rejected?

	Accepted
	Rejected